HB - The Legal Corner Magazine #Issue 7

Transferring the Family Home

BY GEOFF DENNIS Solicitor and Legal Director Private Client

Affection A homeowner may wish to recognise their love and affection for the recipient by granting them ownership of their home. Moral/financial obligations In addition, a homeowner may feel mor- ally bound to transfer their home, either because the recipient has cared for them, they have made some form of promise or other financial commitment to maintain the recipient. Avoidance of delays on death There are currently significant delays in obtaining a grant of representation which is usually needed to transfer property ownership on death. Transferring property in one’s lifetime can avoid this delay. Passing on burden of ownership/ administrative efficiency Property maintenance can be a financial and emotional burden which people may wish to relieve themselves of by transferring it. Tax planning There can be circumstances whereby disposing of one’s home can be effective for tax planning purposes, such as starting the seven-year clock for Inheritance Tax (IHT) purposes.

In the area of estate planning and property inheritance, the transfer of a family home has emerged as a focal point in recent conversations. As societal structures evolve and financial landscapes shift, families are confronted with the complex task of passing down their most cherished asset—the family home—to future generations. However, amidst changing tax laws, economic uncertainties, and shifting family dynamics, the traditional methods of property transfer have been subjected to re-evaluation. This article aims to shed light on the nuances of transferring a family home, examining the legal, financial, and emotional considerations involved. For many families, the home is the principal and most valuable asset. A homeowner (transferor) sometimes expresses the wish to transfer their home to another, such as a family member, in their lifetime. There can be many reasons for this, the most common of which are the following:



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